NewZealandWorkshop

“Linkingclustersinalargeeconomy(India)withclustersinasmalleconomy(NewZealand)tocreateopportunitiesforinternationalbusiness.”1

CEO Visit

Agenda

• Introductions– AlanKoziarski• Alittletheory• Afewexamples

– DairyandWool– CliffFuller– Auckland– StephenCavanagh

• AlookattheFuture• Discussion• WhatdoyouwantfromaTCIconferenceinNewZealand?

2

TheNewZealandTeam

• CliffFuller,TradeCommissioner,Delhi,NZTE

• GarethChaplin,ChiefEconomist,NZTE,

• StephenCavanagh,AucklandTourism,Events,EconomicDevelopment

• PaulFrater,GreenChipLtd

• Ifor Ffowcs Williams,ClusterNavigatorsLtd

• AlanKoziarski,RegionalDirector,SSEA,NZTE

3

QuizQuestions

1. Whowrote“SmallisBeautiful”

2. Whowrote“WhoSaysElephants’Can’tDance”

4

AddLustretoyourClusters

• Action

• Firmsmattermost

• Valuechains

• Clusters

• Thebusinessenvironmentcanbechanged

• Future- focusonwheretheactionisheading(3-5years)

5

OnlyCompanies

Company2

Large vertically integrated companies doing everything

Company1

CustomerRaw Materials Manufacturing DistributionR&D

Generalised Value Chain

Design

LocalCompetitiveness

Specialised companies, vertically integrated regions (clusters) – the cluster, generally regionally based, tried to do everything

CustomerRaw Materials Manufacturing DistributionR&D Design

Generalised Value Chain

Region Region

“NewClustering”Specialised companies, specialised regions, global integration – the global integrator will win

CustomerRaw Materials Manufacturing DistributionR&D Design

Generalised Value Chain

Region

Global Integration Function

MusteringtheClusters

• Smalleconomiesneedtointernationalise

• Enhancingtheeffectivenessgeneratesopportunities– Infillofanidentifiedgapasasupplierofaserviceorproduct

– PartnerinR&D,innovation,– Market– OutsourcingofBPO– Manufacturinginmarket– Distributionchannelsandlogistics

9

SmallisBeautifulIsn'tIt?

• Startonyourkneesandworkyourwaydown

• Price– Licences1tenthofWestern

prices– Needtomeetpriceexpectations

• Justaboutallinteractionsareunequal

• Nichemarketsegments,smallscale,smallvolume

• Identifygapsandseekmostappropriatesolution– Worldclass,appropriatescale,

brandfit

10

ISSUES AND OPPORTUNITIES

CliffFuller,NZTradeCommissioner,DelhiSelectedClusterInteractions– DairyandWool

11

QuizQuestions

1. ..

2. ..

3. Whichcountryhasthelargestdairyindustry?

4. Whichcountryisthelargestdairyexporter?

12

Dairy

India NZ

Milkproduction(millionmetrictonnes)

110 16

Milksupply/consumptionby2021(millionmetrictonnes)

180 20

Percapitaconsumptionperday 265grams 11litres%ofworldproduction 15% 2%%growthinmilkproduction 3% 2.5%

13CEO Visit

ButitisRegional

Punjab NationalaveragePercapitaconsumptionofmilk

950gms 265gms

TotalMilkproduction

9.2millionMT -

Averageyieldperday(crossbreed)

>9.01litres <5litres

Averageproductionperday

>14litres <5litres

Averageherdsize 7-8milkinganimals 2-3milkinganimalsMilkfromorganiseddairyfarms

20% 2%

14CEO Visit

15

Woolcluster

• LonghistoryofartisancarpetweavinginBhadohi /Mirzapur

• ModerntradeestablishedbyIraniandealersin1950

• Importwoolfromoverseasandblendwithlocalcoarsewool,mainlyfromRajasthan

• SpinintoyarninRajasthan–Bikaner isthehub

• ConvertintohandmadecarpetsinUttarPradesh

• ExporttoconsumersinUSA,Europe

16

Woollencarpets– Indiancluster

• Thecarpetbelt:Bhadohi – Mirzapur – Varanasi

• 300carpetmills

• 1-2millionemployees

• AllIndiaCarpetManufacturersAssociation

• CarpetExportPromotionCouncil(Delhi)

• IndianInstituteofCarpetTechnology

• Hand-knottedhand-tufted

17CEO Visit

Woollenyarnmills

• Rajasthan:60%inBikaner

• 50spinningmills

• 15,000people

• NewZealandsupplies12- 14millionkgor35%

• Othercountriessupply30%- Indiasupplies35%

• NZyarnisstrong,clean,scouredbeforeexport

• Mostyarnisblended

18CEO Visit

NewZealandwoolcluster

• Canterbury– Sheep– NZWoolServicesexports65%woolfromNZtoIndia– WoolServicesofNZ- Fernmark– WoolResearchOrganisationNZ/Canesis /AgResearch– LincolnUniversity

• Hawkes Bay– Sheep– NZWoolTestingAuthority

19CEO Visit

Lookingtothefuture

• Lowercosts

• Socialaccountability

• SheepbreedinginIndiatoimprovelocalwool

• Marketing:promotewoolvs synthetics

• Newproducts,newcharacteristics

• Education,R&Dlinks

• NZexample:IcebreakerwithNZMerino

• Missinglink:themarket

20

ISSUES AND OPPORTUNITIES

StephenCavanaghSelectedClusterInteractions

21

QuizQuestions

1. Whowrote“SmallisBeautiful”

2. Whowrote“WhoSaysElephants’Can’tDance”

3. Whichcountryhasthelargestdairyindustry?

4. Whichcountryisthelargestdairyexporter?

5. Whichcountryhasthehighestscoreinasingletestinnings?

6. Whichcountryhasthelowest?

22Answers

DISCUSSION AND WORKSHOP

QuestionsDivideWhatshouldlargeclustersdowhendealingwithsmallclusters?Why?Whatshouldsmallclustersdowhendealingwithlargeclusters?Why?WhatdoexpectfromaTCIConferenceinNewZealand?

23CEO Visit

FutureClusterLinkages

• Aviation:Bangalore– Christchurch

• Appletechnology:Himachal Pradesh– Hawkes Bay

• Buildingproducts:Delhi- Auckland

• Earthquakeengineering:Delhi– Wellington

• Wine:Nashik – Marlborough

• HealthIT:Hyderabad– Auckland

• Wood:Kandla /Bangalore– NewZealand

• Boatbuilding:Kochin /Goa– Auckland

• Naturalgasvehicleindustry?

• BusinessServices

24CEO Visit

Media&Entertainment

• Demographics+Economicgrowth• Narrowcasting- targetingnichestyles• Regional– localcontentinlocallanguage• International– mediamarketoutsideIndia• Organisedfunding– capital+corporatisation• Digitisation– Analog todigital• Convergence– Entertainment+Information+Telecommunications

• Deregulation– Policy+frameworkforco-production25

CEO Visit

ConnectingBollywood andWellywood

• Destination– TourismNZ

• Filmlocation– FilmNZ,Kuran

• Training– MediaDesignSchool

• Specialeffects– WetaWorkshop

• Postproduction– ParkRoad

• Advertisementstreaming- eBus

• Cinematicketing– Vista

26CEO Visit

FutureFilm

• CoProductionAgreementbetweenIndiaandNewZealandinFilmProduction

• LocationbenefitinNewZealand(FilmNZcansupport;FilmCommissioncanprovideincentivesforbothsmall/mediumandlargebudgetfilms)

• Digital&VisualEffectssupport(Weta,ParkRoadPost)

• ConnectingwithLineProducersinNZforfilmshoot

• AnimationandGamingtechnologyfromNZ

• AdventureSports– RealityShows(Khatron kaKhiladi)

27CEO Visit

IndianDairyScene

• India’sdemandformilkislikelytogrowat5%perannum,whereasmilkproductionisgrowingonlyat3%!. NewZealandontheotherhandexports95%ofitsdairyproduction.

• Improvementsinproductivity,efficiencyandinnovationoftheNZdairysectorhavebeenkeycontributorstomakingNZoneoftheleadingdairyplayersintheworld. NZtechnologycanassisttheIndiandairysectortoimproveproductivitywhichisthebiggestchallengefacingtheIndiandairysector.

• AdairytechnologyclusterbetweenHamiltonNZandLudhianaPunjabisonewaytofocusandbuildarelationshipthatworksforbothsides.

• TherearesignificantdairytechnologyandserviceprovidersclusteredaroundHamilton– Trutest Ltd(milkmeters,electronicweighingsystems,electricfences,medicalelectronics)– DECInternational(controlleddrugreleasetechnology)– NDAEngineering(dairyengineering)– GallagherGroup(dairyfarmfencing)– Otenz Group(dairymilkingsystemsandprocessingplants)– LivestockImprovementCorporation(LIC)andAmbreed (dairygenetics).– InnovationWaikato– SourceWorld

• PunjabisthetopstateincommercialdairyfarmingwithPunjabgovernmentfundingandsupporttoenableuptakeofmoderndairytechnologyalongtheentiredairysupplychain– fromfarmtoplate. TheStatehasalargenumberofdairyfarmers/farms,milkproducers,processors,veterinaryserviceprovidersincreasinglymovingtowardsmodernisingthedairysupplychain.ThereisagoodscopeforbuildingkeyrelationshipsleadingtoopportunitiesanddealsforNZ.

28CEO Visit

Hand out only

QuizAnswers

1. Whowrote“SmallisBeautiful”– E.FSchumacher2. Whowrote“WhoSaysElephants’Can’tDance”- Louis

V.GerstnerJr3. Whichcountryhasthelargestdairyindustry?- India4. Whichcountryisthelargestdairyexporter?– New

Zealand5. Whichcountryhasthehighestscoreinasingletest

innings?962/6,in1997,SriLanka6. Whichcountryhasthelowest?26,in1955,New

Zealand

29